Problem I

T transferred his shares to B, by endorsing and delivering his certificate of stock covering the shares to B. However, the transfer has not yet been registered in the books of the corporation.

1. Who is entitled to the dividends declared before registration?

2. Who is liable for the unpaid subscription?

Problem II

After subscribing 100 shares of corporate stock with a par value of 100 each, a stockholder paid for 50 shares or a total sum of P5,000. He then asked for the issuance of a certificate of stock for the 50 paid-up shares but the corporation refused.

Is the refusal of the corporation justifiable? Why or why not

Problem III

B purchased from S shares of stock of a mining corporation, which shares were covered by several certificates endorsed in blank by Mr. Virgilio Malic in whose name the same were registered in the books of the corporation. It was later discovered that the said shares had never been sold or otherwise disposed of by Mr. Virgilio Malic, but had been stolen from where they were kept. Who is entitled to said shares, B or Mr. Malic?

Problem IV

X subscribed to 700 shares of stock in a single subscription in a corporation but paid only for 400 shares, for which he was issued fully paid certificates for 400 shares. Is he entitled to vote the paid up shares notwithstanding the fact that he has not paid the remaining 300 shares?

Problem V

S subscribed from Y Corporation 20 shares of stock with a par value of P100 per share paying P500.00. Afterwards, he was declared in default for nonpayment of his balance and the stocks were offered in a public auction to the highest bidder. The cost of sale and interest accruing amounted to P200.00. In the sale of A, B and C bidded for the unpaid balance with corresponding shares:

A for 5 shares bidded P1,400

B for 5 shares bidded P1,500

C for 5 shares bidded P1,600

Who is the highest bidder?